Ocean City Mayor Introduces Proposed Budget With Slight Tax Increase

Ocean City, NJ -- Summing up the past few days as a “horrible week,” Ocean City Mayor Jay Gillian delivered his State of the City Address and introduced his proposed budget to City Council during Thursday night’s council meeting.

Despite an address that reflected a positive financial outlook for the city, the budget introduced by the administration Thursday night included a 1.1 cent property tax rate increase, meaning the owner of the average $500,000 home in Ocean City would see a $55 increase in their municipal taxes.

The increase is a result of a decrease in the amount of money the city would receive from the library, under state law. Ocean City will see $1.2 million less from the library this year.

Before learning of that development this week, Gillian was aiming for budget with no increase.

“I’m not happy that there is any increase whatsoever, but I’m confident my team has delivered a barebones budget,” Gillian said. “I will not recommend the fiscally irresponsible practice of using too much of our fund balance for a one-time boost.

“The previous five budgets under my administration and with the full support of City Council have included only nominal annual tax increases. Protecting the interests of taxpayers should always remain our top priority.”

There was a 1.25 percent increase across the board, but salaries and wages are $172,000 less than in 2015, and operating expenses are mostly flat, Gillian said. The city negotiated four-year contracts with the city’s eight labor unions that resulted in a 1.3 percent increase for employees and changes to health care plans.

Gillian’s address touted the fact that Ocean City swept every category in the New Jersey Top 10 Beaches Contest, was named among the best places for women-owned businesses and among the top 10 Christmas towns in New Jersey, and that property sales rose by 7.1 percent, including an increase from 210 to 236 single-family homes.

“As I read this, I had to focus on reality,” Gillian said at the conclusion of his speech. “We can talk about top beaches and all that, but we have serious problems with flooding in the city.”

Six residents spoke to city council about the flooding issue during the public comment portion.

Resident Burt Diamond relayed a story about his wife not being able to return home from a visit to LabCorp in Somers Point earlier this week due to the extreme flooding, and said it seemed city leadership was more concerned with tennis, pickleball, soccer fields and the skate park than some of the more serious issues.

“Would it help the decision makers of our city if all the flood affected residents banded together and decided jointly to place their real estate tax payments in an escrow account instead of paying the city, and released it after a confirmed written scheduled plan of action is submitted to us all?” he asked.

Suzanne Hornick said the city needs to be more transparent, and explain to the residents what the $4 million allocated for roads and drainage in the city’s capital plan is for. Eric Sauder said the city is “operating in the dark” because there hasn’t been a full analysis of flooding island-wide.

Ocean City will spend $17.4 million on road and drainage projects this year, and a total of $34.6 million over the next five years.

Residents also criticized the city for hiring a lobbyist to help advance the dredging project.

“Lobbyists drive me crazy, but we have to be responsible for making the quality of life better in Ocean City,” Gillian said. “When you hear the term lobbyist, you think of corruption, but that’s not always the case.”

Councilman Michael DeVlieger said flooding is a result of the back bays not being dredged because the soot and silt in the bays prevents the pipes from draining into the bays.

“If we wanted to (hire a lobbyist) four years ago, I think I would’ve been against it,” DeVlieger said, saying the city hasn’t been able to make any inroads on dredging during that time. “If you’re going to do something difficult, you should go to someone who’s done it already.”

“Not all lobbyists are bad. People lobby for all types of things,” Council President Keith Hartzell said. “ … I don’t think the administration would’ve hired someone they thought would do something wrong.”

Gillian also promised the city would meet with residents, including members of the Ocean CIty Flooding Committee, on the flooding issue.

“The city has identified the most flood-prone neighborhoods on the island and is working with outside engineering experts to design comprehensive plans to mitigate flooding across these large drainage basins,” Gillian said. “Merion Park was completed in December 2014. Two more neighborhoods are in the design phase: 26th Street to 34th Street (between West Avenue and Bay Avenue) and 1st Street to 8th Street (between West Avenue and the bay). It is more important than ever that we work together on solutions and move forward on these vital projects.”

Gillian also discussed:

• the city’s AA bond rating and clean audit;
• grants to be used for the north end pump station, wetlands restoration using dredged material, the skateboard park, Transportation Center repairs, City Hall restoration, and the installation of bike racks;
• the efforts of the city’s newest team members during the recent flooding;
• the addition of more sand in the south end during the upcoming year;
• the fact that the boardwalk will be completely replaced between 5th and 12th streets in just under three years;
• a road ratings system;
• the new police station and a renovated firehouse at 29th Street; and
• artificial turf at Carey Stadium.

“Lastly, I’d like to take a moment to honor John Kemenosh, who passed away late last year,” Gillian concluded. “John was on City Council when I first came to office, and he graciously served as a mentor to me as a public servant. John dedicated his life to helping the city and the community, and he should be a role model for us all as we move into 2016. I know that one reason City Council and the administration work well together is because of Mr. Kemenosh and his ability to pull us all together to get things done right for Ocean City. I am sure he knows we miss him dearly.”

The attached image is a Patch file photo